An Analysis Of The Effect Of Implementing Business Tax Replaced With Vat In Real Estate Industry

Since the Twelfth Five-Year Plan,Business Tax Replaced with VAT has been an important part of the reform of the taxation system,which has been piloted step by step in some industries.Since 2012,some industries have begun this tax reform and until May 1th 2016,this policy has been fully implemented in all industries.And the real estate industry has been included in this tax reform.This essay mainly studies the implementation effect of Business Tax Replaced with VAT in the real estate industry.As an important part of China's structural tax policy,the tax system reform has an impact on all aspects of society.So in view of the original intention of the reform which include reducing the tax burden,optimizing the industrial structure and avoiding duplicate taxation,does the policy really play a role?At the beginning of the implementation of the policy,people had different opinions on this issue.Therefore,when the reform is fully completed,it is particularly important to evaluate the effect of the implementation by using actual data.This paper summarizes the purpose of the implementation of this policy by studying the relevant documents of the policy,and then proceeds from the point of view of the purpose which combining macro-statistics and case analysis.On the one hand,this paper use statistical analysis in the real estate industry.And studies the development of the real estate industry,calculates the tax burden rate of the real estate industry and compares it with the tax burden rate of the three industries.It is found that the tax burden of the tertiary industry declined significantly from the tax reform year to year 2017 for about 16.7%,and the real estate industry declined by the largest proportion in the past 10 years for about 19.9% in year 2017.Therefore,this paper argues that this tax reform optimizes the industrial structure and reduces the tax burden of the real estate industry.On the other hand,this paper chooses POLY Real Estate as a case company,combines with the specific financial data of the enterprise,deeply excavates the relationship between tax burden change and financial data of POLY Real Estate before and after the tax reform,and mainly uses its actual data to measure the implementation effect.Selecting the data of three years from 2015 to 2017,the tax burden of POLY Real Estate under the same operating state is calculated with different calibers.The study found that,under the same operating conditions,POLY Real Estate declined by about 12% in three years on average after the tax reform,but its tax burden was affected by financial indicators such as gross interest rate,land cost and prepaid accounting.Generally speaking,under the same operating conditions,the policy can reduce the tax burden of POLY Real Estate and achieve the purpose of tax reduction.This conclusion is consistent with the previous statistical results of the real estate industry.In addition,this paper combines the chain of POLY Real Estate industry with the link of taxation,and from the specific business point of view,analyzes the phenomenon of repeated taxation and destruction of the deduction chain when business tax is levied.After the tax reform,this phenomenon has been improved.Therefore,the implementation of the policy can reduces the phenomenon of repeated taxation of POLY Real Estate.Finally,aiming at the problem of deduction,this paper puts forward some general strategies and suggestions for real estate development enterprises from three aspects: standardizing invoice management,selecting suppliers reasonably and reducing labor costs.